WASHINGTON -- For-profit colleges that don't produce graduates capable of paying off their student loans could soon face the wrath of the federal government. Schools with career-oriented programs that fail to comply with the new rule being announced Thursdayaby the Obama administration stand to lose access to federal student-aid programs. To meet these "gainful employment" standards, a program will have to show that the estimated annual loan payment of a typical graduate doesn't exceed 20% of discretionary income, or 8% of total earnings. The Education Department estimates that about 1,400 programs serving 840,000 students won't pass. Nearly all of these programs are offered by for-profit schools.
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